Oil prices fell lower on Friday, but Brent has largely gain from the previous session, the rising fluctuations have seen amid concerns over sanctions on Iran that might strangle the oil supply.
According to the reports, Global benchmark Brent Crude Oil futures were down by 29 cents or 0.4 percent at $74.45 barrel around 0302 GMT, However, there was an increase of 1 percent on Thursday.
U.S. West Texas Intermediate (WTI) Crude also fell 28 cents, 0.5 percent to $67.91 barrel. However, the contract was on the gain 0.2 percent from the previous session.
Brent is heading towards the third week of gains, which was up by 0.5 percent whereas, WTI saw dip 0.7 percent for the week.
Iran renewed sanctions might create uncertainty on the market amid concerns of oil supply, President Donald Trump will announce by May 12 whether to re-impose sanctions on Iran after a disputed nuclear program, if Donald Trump re-imposes the sanctions on Iran, the Iranian oil exports would drop significantly. The overall oil market would also be affected by this.
However, Brent has gained 5.9 percent this month expecting the U.S. will renew the sanctions on Iran. Another critical development of the political and economic situation in Venezuela has fueled the concerns about market shrink. The situation in Venezuela has led to a 40 percent reduction in crude output over the past two years.
Despite that, further gains have been capped by rising U.S. production the shale drillers have increased the drilling activity in tandem along with increasing oil prices. U.S. exports have been increased to a record high due to the surge in U.S. production which increased to 10.59 million barrels per day last week.
The U.S. would also wish to maintain the higher exports, and Iranian sanctions would play a critical role in that.